China’s factory activity returns to growth in September

Factory activity in China rebounded to growth in September, according to official data released on Tuesday. This marked a positive shift after two months of contraction. The manufacturing purchasing managers' index (PMI) stood at 50.1, slightly above the 50 threshold that signifies expansion. The National Bureau of Statistics data aligned with expectations from a Bloomberg survey of economists and represented an improvement from July and August, which recorded 49.8 and 49.2 respectively.

Huo Lihui, a statistician from the NBS, stated that the data indicated recovery in economic conditions. She also highlighted that three key industries—equipment manufacturing, high-tech manufacturing, and consumer goods—were experiencing rapid expansion. Overall production and operations in these sectors remained robust.

The non-manufacturing PMI, which measures activity in areas such as services and construction, came in at 50.2, surpassing the Bloomberg forecast of 49.2 and showing an increase from the previous month's 49.0. Additionally, the construction industry's business activity index reached its highest level this year.

Beijing is striving to sustain economic momentum despite challenges like trade tensions with Washington and persistent issues in the property sector, which have caused consumer concerns. On Monday, the government unveiled a package of incremental policy measures to bolster the economy, including mortgage subsidies and enhanced central bank support.

The measures aim to stabilize the property market and foster employment and income growth, according to state news agency Xinhua. China's economic growth has been driven by a sustained export boom and the surge in global demand for its technology products due to the artificial-intelligence craze.